Rocky Mount Debt Relief FAQ’s
Will late fees and interest still accrue on my accounts?
Yes. Even if your account is enrolled in our debt settlement program, your creditors will still charge you with late fees and interests until you finally pay off your entire debt. This means that these fees will still be included in your monthly debt payments, although they may not matter too much in the long run since the debt settlement can significantly reduce your overall liability. Optimal Debt Solutions will negotiate on your behalf, so your payable amount will be less than your original debt, even with all the interests and late fees included.
What if my creditors won’t settle?
Most often than not, creditors will accept your proposal for debt settlement. If they won’t, you’re more likely to end up in bankruptcy and won’t be able to pay them anything at all. With a settlement, however, they can get back at least a fraction of what you owe, which will serve them better. If, unfortunately, your creditor will deny your settlement, we can still help you achieve another form of payment arrangements or agree on some counteroffers that can still be good for your financial status.
Does Debt Settlement have a negative impact on my credit?
Yes. Debt settlement will negatively affect your credit score and continue to reflect poorly on your credit history for years. This can affect your future loan applications, credit viability, and even job opportunities. This is because even if you soon fulfill your obligations through a debt settlement, your failure to meet the conditions in your credit agreement will still be reflected in your debt history.
Fortunately, you can always build back your credit score. Your creditors will notify the credit institutions that you’ve successfully paid your debt and can efficiently manage future credits.
Will I continue to get calls and collection letters from my creditors?
Yes. As long as you still have a debt to pay, you’re more than likely to still receive calls and collection letters from your creditors or collection agencies. However, once they’re notified that you’re working with us, these calls and letters will become less frequent. Just remember that to best handle your creditor calls and avoid harassment, review the program kit we provide for new clients. You should also update your assigned account manager about your creditors’ collection attempts.
Will this program stop legal action against me?
No. Unfortunately, there is no legal protection from debt settlement that could prevent your creditors from filing a lawsuit against you. However, the settlement program, most often than not, makes creditors more lenient, reducing the risk of having them pursue any legal action against you.
If, however, your creditor actually filed a lawsuit, Optimal Debt Solutions will still continue managing your debt settlement for you during the legal proceeding. Whether before, during, or after your lawsuit, you can expect us to negotiate and manage payments on your behalf.
Also, you should keep in mind that hiring an expert lawyer is important in the event your creditor files a lawsuit. This way, you will have a professional dealing with your legal problems while we work on improving your financial status on the other hand.
Who is Qualified?
Debt settlement is available for people who can no longer pay their original overall debt due to a financial crisis that immediately affects their ability to pay. For you to qualify, your financial hardship should have no quick end, such as job loss, medical issues, death of a working spouse, tax liabilities, and divorce.
Aside from a demonstrated inability to pay your total debt, you should also be falling behind several monthly payments in order to qualify. Your type of debt will also be assessed if it’s eligible for the settlement.
Most unsecured debts are eligible for debt settlement, which means that if your debt is not tied to any property that could be taken as an alternative payment, you’re more likely to qualify for a settlement. Common types of unsecured debts are credit card debts, medical bills, and personal loans.
How do I apply?
An application form found on our website must be completed for you to apply. One of our debt consultants will then review the information you submitted before calling you for a situational assessment. After we’ve gathered all the relevant information about your credit situation and financial crisis, we will then determine if you’re eligible for the debt settlement program or not.
What will I pay for your service?
The monthly payment you’ll be making through the debt settlement will be calculated with our service fee included. The overall amount will be based on the total debt you’ve enrolled in the program. Do not worry, however, because we are fully transparent with our charge, and we charge only a minimal service fee. We will disclose how much we’ll get paid before asking you to sign the finalization of our partnership.
When I enroll in the program, what will happen to my accounts, can I still use them?
If you have canceled debts that exceed $600m, you will have to report it as income in your annual tax return. However, canceled debts that are equal to the amount by which you’re still insolvent should not be reported as income. This means that you still don’t have a positive net worth; you’re not yet required to pay taxes for your canceled debts.
Can I still use my credit cards?
No. All your credit cards that are enrolled in the debt settlement program will be inactive. And as for your credit cards that are not in the program, we strongly advise against using them so you can focus on clearing your existing debts without accumulating new ones and potentially building up another debt crisis in the future.
Call Optimal Debt Solutions today at (704) 765-9813 for your Free Evaluation!